Shares of this midcap QSR company fell by 4.55 percent after the company on Wednesday reported a 39.5 percent decline in profits and decrease in margins as well. The company has a market capitalization of Rs. 34,866 crores.
At 1:56, 26th October shares of Jubilant Foodworks Ltd were trading at Rs. 505.25 per share, down by 4.51 percent from previous closing price of Rs. 529.10 per share.
Such negative sentiments in the stock price were observed after the company reported results for Q2FY24 in which profit after tax (PAT) declined by 39.5 percent YOY to Rs. 721 crores in Q2FY24 from Rs. 1,192 crores in Q2FY23 moreover, margins declined by 3.9 percent to 5.4 percent in Q2FY24 from 9.3 percent in Q2FY23.
On the other side, the company’s revenue from operations increased by 4.5 percent to Rs. 13,448 crores in Q2FY24 from Rs. 12,868 crores in Q2FY23. Jubilant Foodworks Ltd added 50 new restaurants in this quarter and operates 1,888 restaurants across 397 cities as of 30th september 2023.
Looking at the profitability ratios, the company reported return on equity (ROE) of 17.83 percent and return on capital employed (ROCE) of 32.3 percent in the last financial year.
The company’s promoters possess roughly 41.9 percent of the shares, while Foreign Institutional Investors (FIIs) own 26.14 percent, and Domestic Institutional Investors (DIIs) have a 22.35 percent stake, leaving the remaining 9.57 percent in the hands of the general public.
Jubilant FoodWorks Limited, a prominent player in the Indian foodservice industry, is a subsidiary of the Jubilant Bhartia Group. Established in 1995, the company boasts exclusive master franchise rights granted by Domino’s Pizza Inc. These rights allow them to oversee the growth and management of the Domino’s Pizza brand across India, Sri Lanka, Bangladesh, and Nepal. Furthermore, Jubilant FoodWorks Limited also holds exclusive development and operational rights for Dunkin’ restaurants in India and Popeyes restaurants in India, Bangladesh, Nepal, and Bhutan.
Written by: Vinit Israni
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